Chapter 515. To permit the United States to be made a party defendant in certain cases
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CHAP. 515.— An Act To permit the United States to be made a party defendant in certain cases. March 4, 1931.[[H. R. 980](/us/bill/71/hr/980).][[Public, No. 862](/us/pl/71/862).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, Federal Government liens on real estate.Consent to name Government party defendent in case involving, granted. That, upon the conditions herein prescribed for the protection of the United States, the consent of the United States be, and it is hereby given, to be named a party in any suit which is now pending or which may hereafter be brought in any United States district court, including those for the districts of Alaska, Hawaii, and Porto Rico, and the Supreme Court of the District of Columbia, and in any State court having jurisdiction of the subject matter, for the foreclosure of a mortgage or other lien upon real estate, for the purpose of securing an adjudication touching any mortgage or other lien the United States may have or claim on the premises involved.
Sec. 2. Service of process. Service upon the United States shall be made by serving the process of the court with a copy of the bill of complaint upon the United States Attorney for the district or division in which the suit has been or may be brought and by sending copies of the process and Copies to Attorney General.bill, by registered mail, to the Attorney General of the United States at Washington, District of Columbia. The United States shall have sixty days after service as above provided, or such further time as the court may allow, within which to appear and answer, plead or demur. 1529 Sec. 3.
Any such suit brought against the United States in anyRemoval of suit to district court. State court may be removed by the United States to the United States district court for the district in which the suit may be pending. TheProcedure for.Vol. 36, p. 1095.[U. S. C., p. 871](/us/usc/p871). removal shall be effected in the manner prescribed by section 29 of the Judicial Code (title 28, sec. 72, U. S. C.): *Provided*, That the*Proviso*.Petition to be filed. petition for removal may be filed at any time before the expiration of thirty days after the time herein or by the court allowed to the United States to answer, and no removal bond shall be required.
TheRemanding to State court authorized. court to which the cause is removed may, before judgment, remand it to the State court if it shall appear that there is no real dispute respecting the rights of the United States, or all the other parties shall concede of record the claims of the United States. Sec. 4. Except as herein otherwise provided, a judicial sale madeEffect of judicial sale. in pursuance of a judgment in such a suit shall have the same effect respecting the discharge of the property from liens and encumbrances held by the United States as may be provided with respect to such matters by the law of the State, Territory, or District in which the land is situated, provided that a sale to satisfy a lien inferior to oneIf to satisfy lien inferior to that of Government. of the United States shall be made subject to and without disturbing the lien of the United States, unless the United States, by its attorneys, consents that the property may be sold free of its mortgage or lien and the proceeds divided as the parties may be entitled: *And*Proviso*.Right of redemption. provided further*, That where a sale is made to satisfy a lien prior to that of the United States, the United States shall have one year from the date of sale within which to redeem.
In any case where the debtForeclosure of Government’s liens, etc. owing the United States is due, the United States may ask, by way of affirmative relief, for the foreclosure of its own lien or mortgage and in any case where property is sold to satisfy a first mortgage or first lien held by the United States, the United States may bid at the sale such sum not exceeding the amount of its claim with expenses of sale, as may be directed by the chief of the department, bureau or other agency of the Government which has charge of the administration of the laws in respect of which the claim of the United States arises.
Sec. 5. If any person shall have a lien upon any real or personalExtinguishing of liens on property against which Government acquires junior lien. property, duly filed of record in the jurisdiction in which the property is located, and a junior lien (other than a lien for any tax) in favor of the United States attaches to such property, such person may make a written request to the officer of the United States charged with the administration of the laws in respect of which the lien of the United States arises, to have the same extinguished.
IfIssue of certificates of release. after appropriate investigation, it appears to such officer that the proceeds from the sale of the property would be insufficient to satisfy, in whole or in part, the lien of the United States, or that the claim of the United States has been satisfied, or by lapse of time or otherwise has become unenforceable, such officer shall so report to the Comptroller General who thereupon may issue a certificate of release, which shall operate to release the property from such lien.
Sec. 6. No judgment for costs or other money judgment shall beNo Federal liability for costs. rendered against the United States in any suit or proceeding which may be instituted under the provisions of this Act. Nor shall the United States be or become liable for the payment of the costs of any such suit or proceeding or any part thereof. Approved, March 4, 1931.